Auction Rate Securities Fraud Lawyer

Should You File an Auction Rate Securities Lawsuit?

The shock of losing liquidity on many, if not all, of your investments is undoubtedly difficult to handle. You most likely have many questions about how this could have happened to you, what this means for your future, and what can be done about it now. If you've been the victim of misrepresentation in the auction rates securities (ARS) market, you have the right to take legal action against those that have caused you to suffer financial losses.

The confusion of how this happened to you may be at the forefront of your mind. While auction rate securities are not illegal in any way, some investment firms have misrepresented them as safe, liquid, short-term cash equivalents that act as an alternative to money market investments. However, this was not the only problem. In many cases, these securities were sold to customers despite the fact that they did not align with the objectives, goals, or wishes of the investors.

Not only were investment firms wrong in representing auction rate securities as risk-free, they also represented them as highly liquid "seven-day money." Although auction rate securities could be considered liquid, they are only that way if the market thrives and demand is strong. Unfortunately, the market has not thrived, making ARS investments illiquid and stagnant.

If you have been a victim of this kind of misrepresentation, you have the right to hold your investment firm legally responsible for their actions. Contact an auction rate securities fraud attorney today at 800-220-9341.